Dangdang GMV Had An Increase of 81.6% YoY in Q2 2014

Dangdang’s total net revenues in the second quarter of 2014 were RMB1,960.8 million ($316.1 million), a 31.3% increase YoY. Dangdang had approximately 8.5 million active customers including approximately 2.9 million new customers, in the second quarter of 2014, representing increases of 12% and 23%, respectively, from the corresponding period in 2013.

Total orders for the second quarter of 2014 were approximately 16.5 million, a 10% increase from the corresponding period in 2013.

Like Jingdong, Dangdang also had a good growth in the second quarter. When B2C leaders like Tmall and Jingdong were battling in tier-1 and tier-2 cities, Dangdang focused on lower tier cities and saw great results.

In addition, they made strong progress in mobile shopping this quarter. Mobile orders were 17% of total orders for Q2 2014 and this rose to 22% in June. They expect mobile orders to increase throughout the year.

Dangdang Second Quarter 2014 Highlights

Gross Merchandise Value (“GMV”) from the marketplace in the second quarter of 2014 was RMB1,431.4 million ($230.7 million), an 81.6% increase from the corresponding period in 2013. Total net revenues for the second quarter of 2014 were RMB1,960.8 million ($316.1 million), a 31.3% increase from the corresponding period in 2013. The combination of product revenue from principal business and GMV from the marketplace reached RMB3,311.7 million ($533.8 million) and grew 49.3% year over year.

Operating income for the second quarter of 2014 was RMB14.6 million ($2.4 million) representing 0.7% of total net revenues, as compared with an operating loss of RMB78.9 million in the second quarter of 2013, representing negative 5.3% of total net revenues. Non-GAAP operating income for the second quarter of 2014 was RMB17.5 million ($2.8 million) representing 0.9% of total net revenues, as compared with a non-GAAP operating loss of RMB76.3 million in the second quarter of 2013, representing negative 5.1% of total net revenues.

Net Income for the second quarter of 2014 was RMB28.8 million ($4.6 million), representing 1.5% of total net revenues, as compared with a net loss of RMB63.9 million in the second quarter of 2013 representing negative 4.3% of total net revenues. Non-GAAP net income for the second quarter of 2014 was RMB31.7 million ($5.1 million), representing 1.6% of total net revenues, as compared with a non-GAAP net loss of RMB61.3 million in the second quarter of 2013 representing negative 4.1% of total net revenues.

Outlook for Third Quarter 2014

Dangdang expects total net revenues in the third quarter of 2014 to be approximately RMB1,983.6 million, an increase of 30.0% YoY. The Company also expects GMV from its marketplace to grow at a rate of 80.0% YoY to approximately RMB1,745.4 million in the third quarter of 2014.